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Article: Are debt funds for you?
- Article from:
- Economic Times (New Delhi, India)
- Article date:
- October 27, 2006
CopyrightCOPYRIGHT 2006 The Economic Times. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Vikas Agarwal
Oct. 27--Debt funds are open-ended mutual funds which invests in low-risk debt instruments like corporate debt, money market instruments, call money etc. The main objective of debt funds is the preservation of principal, accompanied by modest return. Debt funds are ideal for investors who want to take very small risk or who are uncertain with regards to the interest rate scenario or who are uncertain about what they should do with their money in the short term.
Based on the investment profiles, different flavours of debt funds are available in the market. Liquid funds are ideal for investors who have a very short investment time ...